[Washington, D.C.] (September 13, 2017) – According to the Franchise Business Economic Outlook and Leader Survey released today by the International Franchise Association (IFA), the franchise industry is set to grow substantially over the course of the next year, especially if Congress addresses its top two concerns—joint employer and tax reform.

“IFA members are showing strong confidence in their businesses, and that’s great news for the U.S. economy,” said Robert Cresanti, IFA President and CEO. “We’ve seen significant gains in consumer spending, residential and business investment, and exports, and the franchise sector is responding in a positive way.”

The Franchise Business Economic Outlook, prepared by IHS Markit, projects that the franchise sector will grow faster than the overall economy for the seventh consecutive year. Specifically, the Outlook reports that the franchise industry will grow by 1.6 percent to more than 745,000 establishments, an increase of almost 12,000 establishments from 2016. Franchise employment is expected to grow 3.1 percent, and economic output and GDP should each increase by more than five percent.

The franchise industry’s attitude toward their businesses and the political climate also reflect the economic forecast. Eighty percent of franchisors, 64 percent of franchisees, and 76 percent of suppliers expect their business to do better in the next 12 months. Nearly half of franchisor members expect to increase the number of locations by six percent in the coming months, and 60 percent of franchisees expect to increase the number of locations in the months ahead. As the franchise industry seems more optimistic about business conditions, they remain cautiously optimistic about the political climate and the Trump Administration.

“Generally, our members suspect that these next four years will be better than the last eight,” said Cresanti. “We’ve seen positive steps toward a more business friendly environment, such as rolling back unnecessary regulations, but there is still much work to be done. With a burdensome tax code and a confusing joint employer standard, franchise businesses are still competing with one arm tied behind our back.”

The IFA’s Leader Survey also asked participants to rank a number of issues that pose the greatest threat to their business. Of the wide range, franchisors, franchisees, and suppliers agreed that joint employer, tax reform, minimum wage, and health care costs are among the most pressing concerns.

“Franchise businesses are making significant gains and providing ample opportunities for growth in communities nationwide,” Cresanti said. “If we want to keep that momentum going, Congress and the Administration must work toward comprehensive tax reform and sizable regulatory relief – particularly by clarifying the joint employer standard. In doing so, small business owners will be able to move forward with increased certainty and American workers will receive the benefits.”

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About the International Franchise AssociationCelebrating 56 years of excellence, education and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.